Solar Industries at record high, touches Rs 1 lakh crore m-cap on new explosive formulation

Over the last one year, the shares of Solar Industries are higher by 194 percent.

Shares of Solar Industries are at record high, touching a market capitalisation of Rs 1 lakh crore on July 2, just days after its subsidiary disclosed a new explosive formulation that was certified by the Indian Navy.

The development is expected to boost revenue potential for Solar Industries.

Solar's new formulation - SEBEX 2 - has been developed by its unit and claims to produce a more powerful TNT equivalent explosion than any solid explosive that is available right now. The new explosive is reported to be 2.01 times more powerful than a standard TNT (Trinitrotoluene) explosion. The impact of an explosive is measured in terms of TNT equivalence, and any explosive with a higher TNT equivalence has greater destructive power.

"Conventional Explosives, like DENTEX/TORPEX, which are used in conventional warheads, aerial bombs &many other ammunitions worldwide have TNT equivalence of 1.25-1.30", Solar Industries officials said.

Over the last one year, the shares of Solar Industries are higher by 194 percent.

During Q4FY24, the defence player's net profit rose 10 percent to Rs 243 crore, up from Rs 221 crore for the same quarter in the year-ago period. However, sales slipped 16 percent year-on-year to Rs 1,611 crore from Rs 1,929 crore a year ago. Despite this, gross margin expanded 1024 bps to 48.5 percent due to lower raw material costs.

Solar Industries' defence segment clocked a sharp 75 percent year-on-year growth during the fourth quarter, and the management said it is confident of a three-fold rise in defence revenue in FY25, on strong order book.

Solar Industries is calling the three new explosive formulations a 'game changer' for armed forces because of the sheer enhancement of firepower & explosive effect.